Some recent financial statements for Smolira Golf, Inc., follow. Find the follow
ID: 2808030 • Letter: S
Question
Some recent financial statements for Smolira Golf, Inc., follow.
Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profitability ratios as a percent.)
SMOLIRA GOLF, INC.Balance Sheets as of December 31, 2015 and 2016 2015 2016 2015 2016 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 3,091 $ 3,107 Accounts payable $ 2,173 $ 2,640 Accounts receivable 4,747 5,741 Notes payable 1,770 2,156 Inventory 12,558 13,742 Other 94 111 Total $ 20,396 $ 22,590 Total $ 4,037 $ 4,907 Long-term debt $ 13,000 $ 15,760 Owners’ equity Common stock and paid-in surplus $ 40,000 $ 40,000 Fixed assets Accumulated retained earnings 15,674 39,404 Net plant and equipment $ 52,315 $ 77,481 Total $ 55,674 $ 79,404 Total assets $ 72,711 $ 100,071 Total liabilities and owners’ equity $ 72,711 $ 100,071
Explanation / Answer
Answer a.
Current Ratio = Current Assets / Current Liabilities
2015:
Current Ratio = $20,396 / $4,037
Current Ratio = 5.05
2016:
Current Ratio = $22,590 / $4,907
Current Ratio = 4.60
Answer b.
Quick Ratio = (Cash + Accounts Receivable) / Current Liabilities
2015:
Quick Ratio = ($3,091 + $4,747) / $4,037
Quick Ratio = 1.94
2016:
Quick Ratio = ($3,107 + $5,741) / $4,907
Quick Ratio = 1.80
Answer c.
Cash Ratio = Cash / Current Liabilities
2015:
Cash Ratio = $3,091 / $4,037
Cash Ratio = 0.77
2016:
Cash Ratio = $3,107 / $4,907
Cash Ratio = 0.63
Answer d.
Total Asset Turnover = Sales / Total Assets
Total Asset Turnover = $188,170 / $100,071
Total Asset Turnover = 1.88
Answer e.
Inventory Turnover = Cost of Goods Sold / Inventory
Inventory Turnover = $126,603 / $13,742
Inventory Turnover = 9.21
Answer f.
Receivable Turnover = Sales / Accounts Receivable
Receivable Turnover = $188,170 / $5,741
Receivable Turnover = 32.78
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.